Market Analysis: After breaking 10,700, the DAX30 CFD eyes 11,000 points

With the economic docket being quite thin, today we want to focus exclusively on the technical side in the DAX30 CFD. Even though the first week of trading in 2019 was quite short for the DAX30 CFD, it delivered some interesting hints, which may come as a surprise for some traders. After Apple's revenue outlook cut for the first time in almost two decades after markets closed on Wednesday, the DAX30 CFD initially failed to break above 10,660/680 points.

Source: Economic Events 07 January 2019 - Admiral Markets' Forex Calendar

But it didn't break below 10,400 points on Thursday either, and instead used the message that China cut banks' reserve ratios by 1%, the strong US jobs report on Friday, and especially the comments from FED chairman Powell, when he stated that the FED is listening carefully to the markets, that it can change its policy and is prepared to adjust it quickly and flexibly, as fuel for a break of the key resistance region at 10,680/700 points.

Source: Admiral Markets MT5 with MT5SE Add-on DAX30 CFD Hourly chart (between 11 December 2018 to 04 January 2019). Accessed: 04 January 2019 at 10:00 PM GMT - Please note: Past performance is not a reliable indicator of future results, or future performance- In 2014, the value of the DAX30 CFD increased by 2.65%, in 2015, it increased by 9.56%, in 2016 it increased by 6.87%, in 2017 it increased by 12.51%, and in 2018 it fell by 18.26%, meaning that after five years, it was up by 10.5%.

Even though the mode seems a bit extended on the upside, the short-term picture is now bullish, and a re-test of the 11,000 level in the days to come is a serious option. If the DAX30 CFD decides to first go for a first correction, a re-test of the breakout level around 10,680/700 is possible. On the other hand, it wouldn't come as a surprise if the DAX now takes a breath and stabilizes between 10,750 to 10,850 before going for a squeeze up to 11,000 points. In general we can say that on an hourly chart the DAX30 CFD remain short-term-bullish as long as we trade above 10,400 points.

Disclaimer: The given data provides additional information regarding all analysis, estimates, prognosis, forecasts or other similar assessments or information (hereinafter "Analysis") published on the website of Admiral Markets. Before making any investment decisions please pay close attention to the following:

1. This is a marketing communication. The analysis is published for informative purposes only and are in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
2. Any investment decision is made by each client alone whereas Admiral Markets shall not be responsible for any loss or damage arising from any such decision, whether or not based on the Analysis.
3. Each of the Analysis is prepared by an independent analyst (Jens Klatt, Professional Trader and Analyst, hereinafter "Author") based on the Author's personal estimations.
4. To ensure that the interests of the clients would be protected and objectivity of the Analysis would not be damaged Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.
5. Whilst every reasonable effort is taken to ensure that all sources of the Analysis are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis. The presented figures refer that refer to any past performance is not a reliable indicator of future results.
6. The contents of the Analysis should not be construed as an express or implied promise, guarantee or implication by Admiral Markets that the client shall profit from the strategies therein or that losses in connection therewith may or shall be limited.
7. Any kind of previous or modeled performance of financial instruments indicated within the Publication should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
8. The projections included in the Analysis may be subject to additional fees, taxes or other charges, depending on the subject of the Publication. The price list applicable to the services provided by Admiral Markets is publicly available from the website of Admiral Markets.